Significant Increases In Labor Law Penalties

Hawaii has increased the penalties for employers who do not to adhere to state labor laws. On July 1, Gov. David Ige approved stricter punishments for companies who fail to meet the requirements for workers’ compensation insurance, temporary disability insurance, and breaking prevailing wage laws on public construction projects.

Act 187, in part, increases the penalties for not having TDI coverage, for failure to make correct or timely benefit payments, for terminating such benefits, for failure to file medical reports, for employer’s failure to provide copies of requested medical reports, for not having Workers’ Compensation coverage, and for the deduction of premium payment from employee wages.

Penalties for workers’ compensation insurance went from $10 per employee per day to $100 per employee per day, the first increase in 28 years. The penalty for non-compliance with maintaining temporary disability insurance increased from $1 per employee per day to $100 per employee per day. TDI penalties had not changed since they were first established 47 years ago in 1969.

Act 192 increases penalties for contractors who violate wages and hours laws.

The penalties for violations of Hawaii’s prevailing wage laws on public construction projects are changed from 10% to 25% of the amount of back wages due or $250 per offense for a first offense; from $100 to $500 or the equivalent of the back wages due for a second offense within two years; and for a third offense within three years of the second violation from $200 or the amount of back wages to two times the amount of back wages or $1,000 per offense and be suspended from any new public works project for three years.

This is another coup for Local 3, District 17 and our office, the Hawaii Operating Engineers Industry Stabilization Fund, as we continue to strive to create an atmosphere of fair, competitive, and safe contracting for the benefit of the entire construction industry.  Act 187 and 192 will aide in our efforts to improve job security and wage growth for union construction employees.

To read more on Acts 187 and 192, click here: Significant Increases in Labor Law Penalties

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